How to Finalize Balance Sheet & Analysis of Balance Sheet

How to Finalize Balance Sheet & Analysis of Balance Sheet. A balance sheet is a summary of a business’s finical health on any given day. It shows a company’s assets, liabilities, and equity accounts. In this article you can find some basic details for How to Finalize Balance Sheet and Analysis of Balance Sheet like – Steps for making & Finalizing a Balance Sheet, Analysing a Balance Sheet through various ratios, Details for Various Ratios like – Quick Ratio, Current Ratio, Debt/ Equity Ratios, Turnover Ratios, Capital Structure Ratios etc. Find Details for Finalization of Balance Sheet, what is the finalisation of balance sheet, Balance sheet finalisation check list, How to prepare balance sheet, How To Finalise The Balance Sheet?. Now you can scroll down below and check more details for “How to Finalize Balance Sheet & Analysis of Balance Sheet”

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How to Finalize Balance Sheet & Analysis of Balance Sheet

Steps for making & Finalizing a Balance Sheet:

Determine the date of the balance sheet: The balance sheet is created to show the assets, liabilities, and equity of a company on a specific day of the year. Hence, it is necessary to decide that date.

Divide into two heads: Assets & Liabilities.

Calculating Your Assets: Assets are anything of value which is owned by the company.

Classify them into Current & Non Current Assets.

Current assets include cash, stocks and bonds, accounts receivable, inventory, prepaid expenses and anything else that can be converted into cash within one year or during the normal course of business

Fixed Assets are also known as Long-term assets. Fixed assets are the assets that produce revenues. They are distinguished from current assets by their longevity. They are not for resale.

Compute the Total Assets.

Calculating Your Liabilities: There are two types of liabilities: current liabilities and long-term liabilities.

Current liabilities are accounts payable, accrued expenses (such as wages and salaries), taxes payable, etc. which are required to be ordinarily paid in the near future.

Long-term liabilities may include financing from relatives, banks, finance companies or others.